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The TEMA indicator is a trend indicator and very easy to use. It is used to determine the beginning and end of a trend. This tool is designed based on a triple-calculated moving average.
The indicator itself, in fact, is a modified moving average that converts the accumulated historical data and visualizes them in the form of a curve. This provides the opportunity to identify various features and patterns in price dynamics that are not visible to the naked eye.
On the chart, the TEMA indicator is displayed as a yellow line. This tool can serve as an excellent filter in most trading strategies.
Indicator settings
The TEMA indicator allows you to configure the following parameters:
- MAPeriod - data averaging period;
- MAMethod - smoothing method;
- MAPrice - price for calculating the moving average (HIGH, LOW, MEDIAN, etc.).
Indicator signals
As in the Simple Moving Average, the following signals can be distinguished in the TEMA indicator:
- With certain parameter settings, when the price of an asset crosses the indicator line from the bottom up - this is a buy signal.
- And, on the contrary, when the price crosses the indicator line from top to bottom and fixes below it - this is a possible sell signal.
It is worth noting that in this trading instrument, an important component of its proper operation is a certain parameter setting.
Conclusion
It is recommended to use this indicator as part of the trading system along with other filters or methods of technical and graphical analysis. You can find examples of trading strategies using TEMA in the Strategies section of our website.
Download the TEMA MT4 indicator from the button below
Tip: Can’t open the downloaded archive file (ZIP or RAR)?
Try WinRAR for Windows or The Unarchiver for Mac .
Do you need help with installing this indicator into MT4 for Windows or Mac OS? Our guide HERE will help you.
